NIPU-2026 Gas-Based Urea Manufacturing Units

planned

The National Investment Policy for Urea-2026 (NIPU-2026) is a government-approved policy to encourage the establishment of new gas-based urea manufacturing units in India. It aims to reduce dependence on imports by adding around 10 million metric tonnes of annual domestic urea production capacity through the development of eight to nine new plants. The policy introduces structural reforms including separation of fixed and variable costs, a defined Return on Equity range of 12% to 16%, and conversion of fixed costs into Indian rupees after four years to reduce foreign-exchange risks. It also aims to generate estimated savings of over ₹250 crore per plant compared to the previous policy framework and create significant MSME supply-chain opportunities.